Section 3
SEC. 3. The owner of a titled property within which mineral development or exploitation is undertaken shall be entitled to at least one-third (1/3) of the total royalty due the claimowner from the operator based on the prevailing standard royalty in the area where said mining operation is being undertaken, or one percent (1%) of the value of the gross output of minerals therein where there is no prevailing standard royalty or in any other case where no royalty payment is involved or has been, arranged: Provided, That such landowner may choose to receive payment, for any damage caused to his property and compensation for his land at the prevailing market price or assessed value, whichever is higher, plus five percent (5%) of the royalty due the claimowner of the value of gross output of metallic minerals therein: Provided further, That if the right of the surface owner to his land is based on incomplete land titles, as homesteads, sales, leases and other forms of land rights not perfected under the torrens system, the surface right compensation shall be one-fifth (1/5) of the total royalty due the claimowner from the operator, or damages and payment of the land plus three percent (3%) of the royalty due the said claimowner, or six-tenths of one percent (1%) of the value of gross output as above stated: Provided, finally, That the rate of royalty herein set shall apply only in cases of the exploration, development and exploitation of metallic ores. Metallic ores shall be those containing metals, such as gold, copper, silver, iron, nickel and other minerals which the Director of Mines may determine as such by regulation.